Deutsche Bank’s Michael Hsueh noted the possibility of a 2019 oil market deficit could soon put the oil market on the offensive, unless OPEC intervention begins to compensate for growing shortages of Venezuelan, and by the end of the year, Iranian production.
Key Quotes
“He added that signs of such intervention are currently weak at best. At a minimum, he believes a balanced market in 2019 suggests the likelihood of a $70-80/bbl Brent ($64-74/bbl WTI) range. Furthermore he sees the possibility of Brent prices entering a higher range of $80-95/bbl over the 2019-2020 period in the event of a meaningful deficit in 2019 of roughly -443 kb/d and modest intervention by OPEC.”
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